Economics] The World Bank offers 300 million dollars to help the poor in Lebanon

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The World Bank has approved an additional $300 million in financing for Lebanon's poor, by providing cash payments to help families struggling amid the country's historic economic collapse, the foundation said in a statement Friday.

The new financing comes two years after the World Bank approved a $246 million loan to provide emergency cash assistance to hundreds of thousands in the country of 6 million people

Lebanon is going through the worst economic and financial crisis in its modern history. The collapse, rooted in decades of corruption and mismanagement in Lebanon, began in October 2019 and left more than three-quarters of Lebanon's po[CENSORED]tion in poverty.

“The additional financing will enable the Lebanese government to continue responding to the growing needs of poor and vulnerable families who are suffering from the severe economic and financial crisis,” said Jean-Christophe Carette, World Bank Regional Director for the Middle East.

The World Bank said the additional financing will provide cash transfers to 160,000 families for 24 months, including existing beneficiaries. The bank said eligible families would receive up to $145 per family. The project is jointly managed by the Lebanese Ministry of Social Affairs and the World Food Program.

The Lebanese pound lost more than 95 percent of its value at the onset of the economic crisis, leaving many of the country's residents, including one million Syrian refugees, in need of assistance.

The World Bank's announcement came after a separate announcement by the United Nations High Commissioner for Refugees and the World Food Program on Wednesday to start paying financial aid to refugees in Lebanon in dollars instead of Lebanese pounds, with a maximum of $125 per family per month.

Since the collapse of the Lebanese currency, UN agencies have been disbursing aid to refugees in Lebanese pounds. Before the change announced this week, each refugee family was receiving a maximum of 8 million lira per month, worth $80 at the current exchange rate.

But "the rapid depreciation of the pound, the increase in volatility in the exchange rate, and the pressure on the financial provider to provide large amounts of cash in Lebanese pounds" led to the change, according to UNHCR and WFP officials.

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